3/28/2023 0 Comments Qualified education expenses133), signed into law on December 27, 2020, has eliminated the tuition and fees deduction for 2021 and thereafter. The new Consolidated Appropriations Act for 2021 (H.R. However, the Taxpayer Certainty and Disaster Relief Tax Act of 2019 extended the deductibility of tuition and fees for tax years 2018, 2019, and 2020. 9, 2018, has renewed, for tax year 2017 only, the deductibility of educational tuition and fees. The Bipartisan Budget Act, enacted on Feb. This deduction is available for a limited time, until 2020 (Congress may extend this deadline). Although tax credits offer larger savings, they are also subject to more restrictive income phaseout rules, so the deduction may offer a bigger tax benefit for higher income taxpayers. Generally, if either tax credits or a deduction can be claimed, then the taxpayer must choose between either, since both cannot be claimed for the same individual in the same tax year. No deduction is available for expenses of a dependent for whom the American Opportunity Credit or Lifetime Learning Credit is claimed by anyone else nor can a student claim a deduction if anyone can claim her as a dependent, regardless of whether the dependent exemption is actually claimed. The deduction is calculated on Form 8917, Tuition and Fees Deduction and deducted directly from gross income on Form 1040. Up to $4000 per tax return, not per student, of qualifying higher education tuition and fees may be deductible from federal taxes. Educational Tuition and Fees Deduction › Money › Taxes › Educational Tax Benefits Educational Tuition and Fees Deduction
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